Insuring the Uninsured - The Post Office Way

This research-based paper aims to study the role of Post Office in covering the rural people under Rural Postal Life Insurance. It would through light on the life insurance industry in general in terms of coverage and post office in particular. A case study was also made out studying the insurance awareness and their preferences in four Districts of Andhra Pradesh covering the specific rural poor segments which are culturally distinct, sociologically backward and geographically remote. This study reinforces the fact that the future of insurance lies in the bottom of the pyramid. The findings suggest that the rural poor desire life insurance and are willing to save money for that. The study highlights the need to vigorously pursue the micro-insurance initiatives in the rural areas. This particular study is timely as financial inclusion is one of the top most priorities of the government despite the fact that there are major gaps in its policy formulation and implementation. It is a fact that only 3,500 villages have Bank branches in the constructed premises leaving 0.57 million habitations uncovered. In the pursuit, Post Office is an option which is in advantageous position compared to other insurers.